Liability in Connection with the Carriage of Hazardous and Noxious Substances by Sea

Abstract: Borealis AG is a world-leading provider of polypropylene and polyethylene products and has over 50 years of experience in the relevant field. The plastic materials provided by Borealis are mainly used in infrastructure, advanced packaging and in the automotive industry. In addition to the above mentioned Borealis also provides a number of base chemicals, such as melamine, phenol, acetone. All of these substances are considered to be hazardous and noxious, which has a certain effect on liability when shipping such goods. In general it can be said that liability for an incident involving Hazardous and Noxious Substances lies with the ship owner, which Borealis in general is not, however there are certain instances where a charterer or a cargo owner can be held liable for either pollution damage or damage suffered by a third party. Such liability most often occurs when the ship owner was either unaware of the nature of the goods shipped or when the charterer has failed to provide a safe port. The thesis aims at examining relevant case law, national as well as international legislation on carriage of Hazardous and Noxious Substances by sea as well as analyzing Borealis’ Contracts of Affreightment in connection with the transportation of the abovementioned substances. National legislation is mostly silent on the matter, while an International Regime is under adoption at the time of writing. The Hazardous and Noxious Substances Convention, if adopted, will provide a much needed clarification concerning many questions, amongst of which one is who is to be held liable in connection with an incident involving the carriage of Hazardous and Noxious Substances. The question to be examined is under which circumstances Borealis can be held liable for damage suffered in connection with the carriage of said goods. There are a number of suggestions made for improvements/change in the Contracts of Affreightment in order to limit Borealis’ liability to such a great extent as possible.